Iran Revises Contracts to Revive Low-Productivity Oil Wells
New draft measures would increase financial support, share risk with technology firms and provide online access to well data.
Iran is revising oil-well rehabilitation contracts to improve financing, share risk with technology firms, expand participation and accelerate access to well data.
TEHRAN — Iran’s Oil Ministry is revising contracts for the rehabilitation of low-productivity oil wells to reduce risks for technology companies and ease access to well data, the head of the Oil Industry Innovation and Technology Park said.
Mehdi Ahmad-Khanbeigi said the revised model would improve the financial structure, remove limits on the number of wells assigned to companies and require greater support from operating companies. Of 17 existing contracts, 12 remain active while about five were terminated or abandoned, he said.
Under the proposed model, the National Iranian Oil Company would assume part of the risk. A planned online system would also give participating companies faster access to technical well information.